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S 143 IS
111th CONGRESS
1st Session
S. 143
To amend the Internal Revenue Code of 1986 to provide for a college opportunity tax credit.
IN THE SENATE OF THE UNITED STATES
January 6, 2009
Mr. KERRY introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to provide for a college opportunity tax credit.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
SEC. 2. COLLEGE OPPORTUNITY TAX CREDIT.
(a) In General- Section 25A of the Internal Revenue Code of 1986 (relating to Hope scholarship credit) is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection:
‘(i) College Opportunity Tax Credit- In the case of any taxable year beginning in 2009 or 2010--
‘(1) HOPE SCHOLARSHIP CREDIT-
‘(A) INCREASE IN CREDIT- The Hope scholarship credit shall be an amount equal to the sum of--
‘(i) 100 percent of so much of the qualified tuition and related expenses paid by the taxpayer during the taxable year (for education furnished to the eligible student during any academic period beginning in such taxable year) as does not exceed $2,000, plus
‘(ii) 50 percent of such expenses so paid as exceeds $2,000 but does not exceed $6,000.
‘(B) HOPE SCHOLARSHIP CREDIT MADE REFUNDABLE-
‘(i) IN GENERAL- The aggregate credits allowed under subpart C shall be increased by the amount of the credit which would be allowed under this section--
‘(I) by reason of subsection (a)(1) (after the application of this paragraph), and
‘(II) without regard to this subparagraph and the limitation under section 26(a) or paragraph (3), as the case may be.
‘(ii) TREATMENT OF CREDIT- The amount of the credit allowed under this subparagraph shall not be treated as a credit allowed under this subpart and shall reduce the amount of credit otherwise allowable under subsection (a) without regard to section 26(a) or paragraph (3), as the case may be.
‘(C) CREDIT ALLOWED FOR 4 YEARS- Subparagraphs (A) of subsection (b)(2) shall be applied by substituting ‘4’ for ‘2’.
‘(D) CREDIT ALLOWED FOR ANY YEAR OF POST-SECONDARY EDUCATION- Subsection (b)(2) shall be applied without regard to subparagraph (C).
‘(2) LIFETIME LEARNING CREDIT-
‘(A) IN GENERAL- In the case of any student for whom an election is in effect under this paragraph for any taxable year, the Lifetime Learning Credit for such taxable year is an amount equal to the sum of--
‘(i) 40 percent of so much of the qualified tuition and related expenses paid by the taxpayer during the taxable year (for education furnished to the student during any academic period beginning in such taxable year) as does not exceed $1,000, plus
‘(ii) 20 percent of such expenses so paid as exceeds $1,000 but does not exceed the applicable limit.
‘(B) APPLICABLE LIMIT- For purposes of subparagraph (A)(ii), the applicable limit for any taxable year is an amount equal to 3 times the dollar amount in effect under subparagraph (A)(i) for such taxable year.
‘(C) SPECIAL RULES FOR DETERMINING EXPENSES-
‘(i) COORDINATION WITH HOPE SCHOLARSHIP CREDIT- The qualified tuition and related expenses taken into account with respect to a student under subsection (a)(1) for the taxable year shall not be taken into account under this paragraph.
‘(ii) EXPENSES FOR JOB SKILLS COURSES ALLOWED- For purposes of subparagraph (A), qualified tuition and related expenses shall include expenses described in subsection (f)(1) with respect to any course of instruction at an eligible educational institution to acquire or improve job skills of the student.
‘(3) LIMITATION BASED ON AMOUNT OF TAX- In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for the taxable year shall not exceed the excess of--
‘(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over
‘(B) the sum of the credits allowed under this subpart (other than this section and sections 23, 24, and 25B) and section 27 for the taxable year.’.
(b) Technical Amendment- Section 1324(b) of title 31, United States Code, is amended by inserting ‘25B(i)(1)(B)’ before ‘35’.
(c) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2008.
U.S. Congress - Text of S.143 as Introduced in Senate College Opportunity Tax Credit Act of 2009
